Share-Based Compensation

12 Months Ended

Dec. 31, 2012

Share-Based Compensation

Note 16: Share-Based Compensation

Compensation cost charged against income, primarily SG&A expense, and the income tax benefit recognized for our share-based compensation arrangements is included below:

	Years Ended December 31,
	2012		2011		2010
	(In thousands)
Total share-based compensation cost	$	12,374	$	11,241	$	12,177
Income tax benefit		4,812		4,372		4,736

We currently have outstanding stock appreciation rights (SARs), stock options, restricted stock units with service vesting conditions, and restricted stock units with performance vesting conditions. We grant SARs and stock options with an exercise price equal to the market price of our common stock on the grant date. Generally, SARs and stock options may be converted into shares of our common stock in equal amounts on each of the first three anniversaries of the grant date and expire 10 years from the grant date. Certain awards provide for accelerated vesting in certain circumstances, including a change in control of the Company. Restricted stock units with service conditions generally vest 3-5 years from the grant date. Restricted stock units issued based on the attainment of the performance conditions generally vest 50% on the second anniversary of their grant date and 50% on the third anniversary.

We recognize compensation cost for all awards based on their fair values. The fair values for SARs and stock options are estimated on the grant date using the Black-Scholes-Merton option-pricing formula which incorporates the assumptions noted in the following table. Expected volatility is based on historical volatility, and expected term is based on historical exercise patterns of option holders. The fair value of restricted stock units is the market price of our common stock on the date of grant. Compensation costs for awards with service conditions are amortized to expense using the straight-line method. Compensation costs for awards with performance conditions are amortized to expense using the graded attribution method.

	Years Ended December 31,
	2012			2011			2010
	(In thousands, except weighted average fair value and assumptions)
Weighted-average fair value of SARs and options granted	$	19.53		$	17.64		$	10.47
Total intrinsic value of SARs converted and options exercised		2,452			3,801			2,947
Cash received for options exercised		2,372			4,599			3,158
Tax benefit (deficiency) related to share-based compensation		4,119			1,790			(110	)
Weighted-average fair value of restricted stock shares and units granted		35.85			35.91			22.34
Total fair value of restricted stock shares and units vested		9,017			4,370			7,611
Expected volatility		54.26	%		52.00	%		50.89	%
Expected term (in years)		6.1			6.1			6.1
Risk-free rate		1.11	%		2.49	%		2.89	%
Dividend yield		0.50	%		0.56	%		0.91	%

	SARs and Stock Options									Restricted Shares and Units
	Number			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value		Number			Weighted- Average Grant-Date Fair Value
	(In thousands, except exercise prices, fair values, and contractual terms)
Outstanding at January 1, 2012		3,124		$	27.37						582		$	23.11
Granted		609			39.77						92			35.85
Exercised or converted		(430	)		18.12						(239	)		37.92
Forfeited or expired		(164	)		39.56						(49	)		25.44
Outstanding at December 31, 2012		3,139		$	30.40		6.2	$	45,795		386		$	26.67
Vested or expected to vest at December 31, 2012		3,045		$	30.34		6.1	$	44,618
Exercisable or convertible at December 31, 2012		1,872			26.74		5.0		34,159

At December 31, 2012, the total unrecognized compensation cost related to all nonvested awards was $15.6 million. That cost is expected to be recognized over a weighted-average period of 1.8 years.

Historically, we have issued treasury shares, if available, to satisfy award conversions and exercises.